(A) This section sets forth the standards and expectations governing budgeted town purchasing thresholds and requirements for:
(1) Small purchases of $1 to $4,000;
(2) Verbal bids and quotes for purchases of $4,001 to $15,000;
(3) Written informal quotes or bids for purchases of $15,001 to $35,000; and
(4) For purchases above $35,000, see § 35.38 of this chapter.
(B) Small purchases of $4,000 and less are not subject to the competitive process. Using department directors are authorized to approve these budgeted procurements and are responsible to determine the frequency and total dollar expenditures for such goods and services.
(1) Using department directors are responsible for monitoring their department expenditures ensuring that invoices reflect the actual goods and services received. Small purchases approved by a using department head for budgeted transactions up to this limit need to be documented by a signed requisition.
(2) Procurement requirements shall not be artificially divided to a lower amount so as to constitute a small purchase in order to avoid the required bidding or approvals.
(C) The Procurement Agent or designee will perform regular and random audits/spot checks on purchases of $4,000 or less. The minimum number of audits conducted will be 5% per month, and this includes transactions conducted with credit cards. If violations or deviations from this chapter are discovered, a department director may have his, her or their small purchases authority removed or suspended by the Town Manager.
(D) For budgeted purchases estimated to cost between $4,001 and $15,000, three quotes shall be solicited to submit informal verbal quotations.
(1) The Procurement Agent or designee will review quotes and may request additional quotes prior to making the final award decision.
(2) Award shall be made to the responsible bidder submitting the quotation which is most advantageous to the town and conforms to the solicitation.
(3) If only one responsive quotation is received, a statement shall be included in the contract file setting forth the basis for determining that the price is fair and reasonable. This determination may be based on a comparison of the proposed price with prices found reasonable on previous purchases or current price lists.
(4) Purchasing transactions are not to be artificially divided or fragmented in order to meet the lesser requirements of lower dollar transactions.
(5) Price and other confidential information provided by vendors shall not be shared with competitors by any individual involved in the process until after bid opening.
(E) For purchases estimated to cost between $15,001 and $35,000, three bidders shall be solicited to submit informal written quotations.
(1) When requested, bidders shall submit quotes on a form approved by the Procurement Agent and the quotes shall be recorded and placed in the project file.
(2) Award shall be made to the responsible bidder submitting the quotation which is most advantageous to the town and conforms to the solicitation.
(3) If only one responsive quotation is received, a statement shall be included in the contract file setting forth the basis for determining that the price is fair and reasonable. This determination may be based on a comparison of the proposed price with prices found reasonable on previous purchases or current price lists.
(4) Purchasing transactions are not to be artificially divided or fragmented in order to meet the lesser requirements of lower dollar transactions.
(5) Price and other confidential information provided by vendors shall not be shared with competitors by any individual involved in the process until after bid opening.
(Ord. 20-12, passed 10-27-2020)